ARMZ to close deal to consolidate 100% of Uranium One Oct 18

MOSCOW. Sept 26 (Interfax) - Atomredmetzoloto (ARMZ), the Russian uranium mining holding, will close a deal to consolidate 100% of the shares in Canada's Uranium One on October 18.

Uranium One said in a statement that it had obtained all the necessary regulatory approvals to close the deal.

The deal was previously expected to close at the end of the second quarter, but Uranium One said in June that it expected it to close in the third quarter.

ARMZ currently owns 51.4% of Uranium One. Under the terms of an agreement signed in January 2013, ARMZ will acquire all common shares in Uranium One not currently owned by the company and its affiliates at a price of CAD2.86 per share. ARMZ will spend a total of about CAD1.3 billion ($1.32 billion) on the deal.

Uranium One will de-list from the Toronto and Johannesburg stock exchanges following closure.

In addition, all corporate procedures to create Uranium One Holding B.V. should be wrapped up by the autumn of 2014.

Rosatom, the state nuclear corporation which controls ARMZ, said at the end of May that foreign uranium projects controlled by Uranium One would be unbundled from ARMZ. Uranium One's assets will be transferred from ARMZ to the Netherlands-based Effective Energy N.V., which will be renamed Uranium One Holding. This holding company will be controlled by Atomenergoprom, which manages Rosatom's civilian assets.

Uranium One Holding will also get 100% control of Mantra Resources, which is developing the Mkuju River uranium deposit in Tanzania. Uranium One acquired 14% of Mantra from ARMZ in March 2012 and has an option to buy out the remainder until June 2013.

ARMZ will also expand the scope of its operations in Russia beyond uranium mining to also develop gold, zinc and lead deposits.

In Kazakhstan, Uranium One owns 70% of the Betpak Dala joint venture, which owns the Akdala Mine and the South Inkai Mine; 50% of the Karatau joint venture, 30% of the Kyzylkum joint venture (Kharasan project), 50% of the Akbastau joint venture and 49.67% of the Zarechnoye joint venture, which owns the Zarechnoye Mine and the South Zarechnoye Project. In the United States, the company owns 100% of the Willow Creek Project, and has a number of development projects in Wyoming. In Australia, Uranium One owns 51% of the Honeymoon Uranium Project. It is also the operator of Mantra Resources' Mkuju River project in Tanzania.

In Russia, ARMZ controls Priargun Mining and Chemicals Association, which produced about 63% of Russia's uranium in 2011; CJSC Dalur and OJSC Khiagda, where mining is done by drillhole in situ leaching. ARMZ is also developing deposits in the Southern zone of the Elkon uranium district in Yakutia, which calls for the construction of the Elkon mining and metallurgical complex and a number of other projects.

In November 2012, ARMZ bought 99.5% of First Ore Mining Company for $30 million. This company holds the rights to the Pavlovskoye lead and zinc field on Novaya Zemlya, one of the world's five largest.

You can access a demo version of, receive more information about or subscribe to Interfax publications by filling in and returning the form below. We also have dozens of reports in the Russian language, please indicate if you are interested.

Sudanese State Minister for Foreign Affairs Atta Elmanan Bakhit has given an interview to Interfax during his visit to Moscow in which he speaks about a visit of Sudanese President Omar al-Bashir to Russia, bilateral Russian-Sudanese economic and military cooperation and describes sanctions in the global politics as "immoral and illegal".

Secretary General of the League of Arab States has given an interview with Interfax in the wake of his negotiations with Russian Foreign Minister Sergei Lavrov in which he speaks about the participation of Arab countries in the Astana process, Russia‘s political and military role in Syria, as well as prospects for resuming Syria‘s membership in the Arab League.

Bahraini Ambassador to Russia Ahmed Abdulrahman Al Saati has given an interview to Interfax in which he speaks about the prolongation of the decision of OPEC and non-OPEC countries to freeze oil output, prospects of energy cooperation between Bahrain and Russia, bilateral military-technical cooperation and prospects for resuming diplomatic relations with Iran.

News and other data on this site are provided for information purposes only, and are not intended for republication or redistribution. Republication or redistribution of Interfax content, including by framing or similar means, is expressly prohibited without the prior written consent of Interfax.